Automatic Data Fair Value
AD
The fair market value of ADP stock is 276.85 USD. Relative to the market price of 307.34 USD Automatic Data is overvalued by 9.9%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Automatic Data Valuation
Current ADP share ticker price is 307.34 USD.
The fair value level of 276.85 USD can be considered as an effective entry point for long-term investors to start investing in ADP stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 10% higher its fair value
Current price is 21% higher its minimum value
Current price is 0% higher its maximum value
Market price:
ADP stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Automatic Data Processing Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
32.58
2
Median P/E over 5 years
29.48
3
Minimum P/E over 5 years
25.99
4
Earning per share (last 12 months)
9.39 USD
Maximum value
1
x
4
=
305.93 USD
Fair value
2
x
4
=
276.85 USD
Minimum value
3
x
4
=
244.08 USD
Automatic Data Processing Inc price metrics
11.99
Annual return (geometric mean)
27.89
Risk (standard deviation) of returns
β
0.82
Beta (volatility compared to market)